Credit Implications of Brexit
The UK's decision to leave the European Union has far-reaching credit consequences across all sectors and regions.
  • SUMMARY
  • REPORTS

  • SECTOR COMMENT
    15 Jun 2020|Moody's Investors Service
    On 12 June, the UK formally confirmed that it will not request an extension of the Brexit transition period with the European Union  beyond 31 December. With an extension of the transition period off the table, risks are rising that no agreement will be reached. Such an outcome, a so-called no-deal Brexit, would be a clear credit negative for debt issuers in both the UK and the EU.

    SECTOR IN-DEPTH
    10 Jun 2020|Moody's Investors Service
    We forecast the UK economy to experience its deepest recession in almost a century as a result of the impact of the coronavirus outbreak and associated public health policy response. Although we expect the economy to begin to recover in the second half of the year, a no-deal Brexit at the end of 2020 could significantly damage the UK's nascent economic recovery.

    SECTOR COMMENT
    26 Feb 2020|Moody's Investors Service
    On 21 February, the UK's HM Revenue and Customs reported an uptick in the number of residential property transactions in the past month. Recent data reveals that cautious optimism has returned to the UK housing market, but we expect this trend to be short-lived in 2020.